Friday, January 31, 2014

from STRATFOR

The Limits of Turkey's Interest Rate Hike

A Turkish man stands in front of a foreign exchange shop on Jan. 28 in Istanbul.(GURCAN OZTURK/AFP/Getty Images)

Summary

With a dramatic hike in Turkey's
overnight lending rate from 7.75 to 12.5 percent announced on Jan. 28,
Turkish Central Bank Gov. Erdem Basci followed through on his earlier
promise to use interest rates as a weapon to defend Turkey's currency,
the lira. While the hike is a bolder-than-expected move designed to jolt
investor interest, Basci is still, in effect, using a sword to fight
off a barrage of artillery as a wrenching political crisis continues to
erode investor confidence.

Analysis

Turkey has been desperately trying to
stem the plunge of the lira, which has declined about 10 percent against
the U.S. dollar since the start of the year. Like several other
once-celebrated emerging economies, Turkey has seen a rapid outflow of
short-term portfolio investment that Ankara had been heavily relying on
to help cover its burgeoning current account deficit, totaling $60.8
billion, or roughly 7 percent of gross domestic product, for January to
November 2013.
The capital flight has been driven in part by the U.S. Federal Reserve's withdrawal of stimulus measures,
which has limited Turkey's access to cheap liquidity. With the Federal
Reserve's Jan. 29 announcement that it would again reduce its monetary
stimulus, Turkey is now applying all of its tools to stabilize the lira,
even with the knowledge that the move is unlikely to have a lasting
impact. This is because Turkey's financial troubles have been greatly
exacerbated by a deep-rooted power struggle that is only going to
intensify in the lead-up to local elections in March, presidential
elections in August and parliamentary elections in 2015.
Foreign investors have been chiding Turkey's government for its
unorthodox method of defending the currency, until now consisting mostly
of foreign exchange auctions and withdrawals from the central bank in
order to avoid raising interest rates, a move the government feared
would limit growth. But Turkey's government has also been operating
under heavy political constraints, resulting in swings in both its
economic and political behavior. In this particularly volatile election
season, Turkish Prime Minister Recep Tayyip Erdogan has been loathe to
turn to measures that would slow economic growth and thus undermine his
party's standing.

In the days leading up to the central bank decision to raise the
interest rate, Erdogan remained publicly defiant, urging the central
bank to stand strong and not give in to the so-called interest rate
lobby, which he charged with trying to undermine Turkey's growth. When
nationwide protests spun up from a Gezi Park demonstration in 2013,
Erdogan declared war against the same nebulous interest rate lobby,
which he accused of fanning the demonstrations out of greed and desire
to topple the government.
Erdogan's distrust of high interest rates stems from a much deeper
political paranoia. Perhaps the defining moment of Erdogan's political
career was the 1997 military coup that ousted the Welfare Party, the
predecessor of Erdogan's Justice and Development Party, from power.
Erdogan, who was mayor of Istanbul at the time, was sentenced to prison
for 10 months for reciting a poem that criticized the army. This was
also a very volatile period for the Turkish economy, with the country
facing chronic double-digit inflation and staggeringly high interest
rates on foreign loans to cover a soaring budget deficit. Members of
Turkey's traditional secular elite who ran the country's largest banks
were accused of being debt profiteers during the crisis, making Erdogan
all the more determined to write off debt, contain inflation and raise a
new economic power elite when he came into power in 2002.
In vilifying high interest rates against the prevailing economic
consensus on how to deal with the problem, Erdogan is (rationally or
not) trying to warn against a repeat of the past that would empower his
old adversaries. The crop of economic elites that Erdogan worked hard to
empower over the past decade now find themselves targeted by a
cutthroat corruption probe launched by his own party's former allies, jeopardizing years of work and with it, Erdogan's legacy. The Gulen movement,
whose powerful network in Turkey's judiciary, police forces, media and
government was once instrumental in bringing the Justice and Development
Party to power, is intent on seeing Erdogan cut down to size in
upcoming elections.
Exacerbating Erdogan's fears is a concern that the Gulenists will
quietly forge an alliance of convenience with Turkey's old secular elite
to weaken and fracture the ruling party. Even as the central bank is
straying from Erdogan's line to pursue a more conventional monetary
policy, this is a power struggle that will only intensify in the coming
months and thus continue to undermine investor confidence in Turkey.

"One difficulty about prescribing for inflation is that we
don't entirely know how serious the disease is…..The argument made by
those who demand very low rates [of inflation] has simply been
inconclusive." (Paul McCracken, former Chairman of the Council of Economic Advisors.)

Let's scrutinize the above statement…

The history of civilization is, in reality, the history of a series
of societies, or nations, as you might call them. The people in each
nation have come under the control of the leaders of a state or
government by force or by vote. In either case, the leaders of the
country (with the cooperation of the bankers) have always and in every
case found it necessary to increase their funds beyond the amount they
could collect through taxation. This is almost always done through some
form of currency debasement.

Whether the state borrowed from banks and monetized the debt,
clipped coins, or simply ran printing presses to print new issues of
notes, the results have always been the same: rising prices. As the
state monetized debt and consumed the products and services purchased
with those I.O.U.'s, the community as a whole was deprived of that
production.

The fact that the community felt it was receiving tangible wealth
back in the form of "money" only served to confuse it. In the end, the
confusion that resulted from this illusory wealth caused a fatal cycle
of events that ultimately ended in the collapse of each of those states.

As the individuals in society attempt to react to the symptom (rising prices), the trouble begins.

If you, as an individual, borrow money from someone and never repay
that person, you have stolen from him. You are a thief. He is worse
off; he has lost some of his wealth. When a state monetizes debt either
by printing bank notes directly or by borrowing such notes from a bank
without intention of repaying, it is just as much a thief of the
society. The difference is that the victim becomes twice remove from his
enemy. He can't tell by whom he has been victimized.

The real loss falls on the population as a whole, and in such a
camouflaged pattern that the results defy surface analysis. In other
words, the theft is translated into rising prices, and the rising prices
do the dirty work. When the victim feels the threat and tries to
protect himself, he usually flails out at the symptom rather than the
cause. The theft occurs when a person borrows money and does not repay
it. The symptom is the rising price. As the individuals in society
attempt to react to the symptom (rising prices), the trouble begins.

When the Congress votes to increase the national debt, as they have
done periodically for years, how do you feel? Do you realize that what
they're doing is borrowing money directly from you with no intention of
ever paying it back (Borrowing it from you, if you're a producer. of
course, if you're on welfare or unemployed, you have nothing to lend
them.)

Would you consider loaning someone money knowing that they had a
long history of debt repudiation, and know that you may not agree with
what they will do with the money once they've borrowed it? Of course,
you wouldn't. But you're doing it anyway.

The most staggering revelation to come from a study of the economic
history of past societies is that the sequence of economic events in
the United States during the past fifty years has occurred repeatedly in
dozens of other societies stretching as far back as early Macedonia:

Government needs more money than it is able to collect through taxation, so it issues paper money (or clips coins).

When the government spends this new money, business picks up.

As the increased supply of money percolates down through the society, prices begin to rise and business begins to slump.

To counteract the slump, the government issues more money.

Business picks up again, prices begin to rise, business slumps again.

People begin to distrust paper currency and begin to hoard gold and silver coins.

More inflation: prices begin to rise more steeply, people demand action and government passes price and wage control laws.

Shortages appear, rationing begins, black markets take over in place of regular markets.

Speculation begins to replaced prudent investing as capital markets fluctuate up and down in concert with the business cycles.

Hard work falls into disrepute; people get rich (or poor)
speculating; the thrifty lose all to inflation more and more people go
on relief as production falls and inflation forces prices out of the
reach of the elderly and marginal producers.

As more people go on relief, government must tax the remaining
producers more heavily until they decide to stop producing, and the
situation beings to compound itself.

The above scenario has been repeated in almost every society where
the state has debased the currency. Everyone who is concerned about
preserving his wealth should read Fiat Money Inflation In France by
Andrew Dickson White. It is a classic chronicle of the effect that fiat
money had on the economy of France subsequent to the French Revolution.
The parallels between France in 1789 and the U.S. in the 20th century
are both obvious and frightening.

One has to wonder if President Roosevelt had ever studied the
histories of countries that tried outlawing gold and inflating the money
supply to solve their temporary economic problems. When he said, "it's
all right; after all, we're borrowing from ourselves," had he heard of
Macedonia, or the French economy of 1789? And what of President Nixon?

When he instituted price controls, where were the scientists who
said, "Let's observe the past before we act." If the saying is true that
history repeats itself, could it be because no one consults history
before they act? For Dr. McCracken to say that we don't really know of
the seriousness of the disease called inflation is totally absurd. The
disease is fatal.

JANUARY 29, 2014 ... false solar reporting discovery ... many have
heard about the "Maunder Minimum" in which there was a mini ice age
in Europe during the middle ages ... one characteristic of this as well as
about a dozen other minimums going back thousands of years is that the solar
sun spot count dips very low for an extended period of time ... i have reported
about places like the Rothschild owned spaceweather dot com web site that is
continually trying to report an active sun where there is none ... but recently
i discovered an amazing fact relating the current cold winters (last year and
now this year) with the maunder minimum and sun spot count ... the actual sun
spot count has been actually lower over past years than during the maunder
minimum ... that's right ... we had over 3 years of ZERO sun spot activity
which is even lower than the lowest count during the maunder minimum (which
lasted about 3 years also at its lowest point) ... yet the maunder minimum cold
period lasted for over 70 years ... my point is that NO ONE IN THE STANDARD
SCIENCE COMMUNITY IS REPORTING THIS COMPARISON ... there are many other
questions that must be answered but this is a stark realization ... as with
everything else you had to come to my web page for this reporting ... jim
mccanney

JANUARY 28, 2014 ... a fun winter/weather fact ... did you know
that Minnesota has the widest swing of temperatures of any place on earth ...
its high records beat all states and low records again beats all states ....
that may seem odd but the long 18 hour summer days with lots of sun overhead
with little time to cool down at night plus winds from the south drive its
temps into the 100's where as the opposite happens in the winter ... short 6
hour days with low sun angle coupled with long nights and the "alberta
clipper" which brings arctic air directly to your door step ... and oh yes
.... minnesota mosquitoes are known for their veracity at carrying away
unsuspecting visitors ... jim mccanney

JANUARY 28, 2014 ... as the northern states grip for another night
of severe winter weather ... the southern states into even florida also from
texas to washington DC are being hit with blizzard conditions ... this is NOT a
"polar vortex" as you are being told by the evening weatherman who
has no clue what is going on ... the real story as i have been reporting is
that we are in a sever solar energy shortfall in both light and electrical
energy ... the sun is in a low power state which we also read in a low sun spot
rate ... we are possibly heading into a solar energy shortage THE
OPPOSITE OF GLOBAL WARMING ... if spring conditions maintain we could be in for
severe world wide crop failures and food shortages ... jim mccanney

Thursday, January 30, 2014

By Trefor MossThe Wall Street JournalMANILA—The
Philippines cried foul this week when China announced plans to begin
regular patrols of the South China Sea, known here as the West
Philippines Sea. The two countries have been engaged in a tense dispute
over the region since 2012, when Chinese ships took control of
Scarborough Shoal, which is just one of the areas Beijing and Manila
contest.
Government spokesman Raul Hernandez insisted any such patrols would
be illegal because the area in question is Filipino, not Chinese,
territory: Under international law, he said in a statement sent by text
message to reporters on Jan. 22, China’s Exclusive Economic Zone, or
EEZ, “cannot extend beyond 200 nautical miles” from the Chinese mainland
and Hainan Island, a province at the southernmost end of China.* What does that mean? Every country with a
coastline has ownership of the seas immediately around it. This area of
“territorial sea” extends 12 miles from the coast, and foreign ships are
not allowed to enter those waters without permission. Every country
with a coastline also has an EEZ. This zone stretches 200 miles from the
coast, and the controlling country has exclusive rights to exploit the
resources within that area. That includes fishing and undersea drilling.
Foreign ships are free to sail through an EEZ.* And beyond that? These are the high seas, and global commons: All nations have the right to sail them and to exploit their natural resources.* Says who? The United Nations Convention on the Law
of the Sea, or UNCLOS, is the main piece of international law that sets
out maritime rules. Not all countries have ratified UNCLOS, but both
China and the Philippines have. So, in theory, both are committed to
respecting the system it prescribes.* How does this apply to the small islands in the South China Sea?
There are three types of features to think about – islands, rocks and
reefs. An island is an inhabitable, though not necessarily inhabited,
feature. Whichever country owns it also own 12 miles of territorial sea
plus a 200 mile EEZ – even if the island is hundreds of miles from the
mainland. That explains their great value to the claimants – a remote
spec of land can potentially yield a huge EEZ, complete with all the
resources it contains. Only about 20 of the 150 features comprising the
Spratly Islands – a scattered South China Sea group claimed by China,
the Philippines and others – can be classed as proper islands. A rock,
on the other hand, is an uninhabitable feature. It gives the country
that owns it 12 miles of territorial sea, but no EEZ; so rocks have
limited value. A reef, or other submerged feature, provides neither
territorial sea nor an EEZ – even if you build a structure on the reef
that protrudes from the water (a tactic that some countries have tried).* So are Chinese patrols in the South China Sea legal, or not?
China claims about 90% of the South China Sea, even areas that lie well
beyond 200 miles from the mainland. Beijing says it has controlled
these waters for centuries. Other claimants, including the Philippines
and Vietnam, reject that argument. If we accept China’s claim to most of
the South China Sea, then of course China can patrol wherever it wants
within that area, since a ‘patrol’ is an obvious way of staking claim to
those waters. If we reject China’s claim, Chinese ships still have the
right to sail through the South China Sea, provided they stay out of the
12-mile territorial waters surrounding any islands or rocks owned by
the Philippines, or other countries. Active ‘patrols,’ however, would be
seen as a statement of ownership, and therefore potentially
provocative.* Is there a way to settle whether China or the Philippines owns the disputed islands?
The Philippines has taken the matter to arbitration at the United
Nation’s International Tribunal on the Law of the Sea. It argues that
China’s broad-brush claim to most of the South China Sea is arbitrary
and unlawful, since it is based on a vague, broken line drawn around the
claimed area, which Beijing has never properly defined. The Philippines
says that the line is not recognized under UNCLOS, and that China’s
claim therefore has no legal basis. The U.N. court is expected to rule
on the case between March and September of this year. However, China has
refused to take part in the process, and is unlikely to accept the
verdict if it loses.* So will the dispute just rumble on? And on, and on.http://blogs.wsj.com/searealtime/2014/01/25/why-china-and-the-philippines-are-battling-over-rocks-reefs/

Political tensions in the South China Sea have seldom been higher,
with China’s “marine identification zone” deemed a provocative threat to
peace by neighboring countries and the United States. The vast area,
variously claimed by China, the Philippines, Vietnam, and other
southeast Asian countries, is hotly contested in part because it is
thought to hold vast reserves of oil and natural gas.
It’s easy, then, to foresee some sticky scenarios emerging from an
unusual joint research trip set to embark this week. Thirty-one
geologists from 10 countries—including 13 from China and nine from the
United States—will spend two months drilling rock samples in the South
China Sea. The trip is funded mostly by China, but will take place on a
US-operated drilling vessel, the JOIDES Resolution, under the auspices
of the International Ocean Discovery Program.If
the group finds oil deposits, as a previous research expedition did in
the late 1990s, it will raise the diplomatic stakes for the countries
vying for control of the South China Sea waterways and islands, such as
the Spratleys and Paracels.
“Oil and gas fields lie close to the coast, but the key is to open
the treasure box buried beneath the basin,” Wang Pinxian, a marine
geologist and member of the Chinese Academy of Sciences, told the South
China Morning Post. Estimates vary widely, but the South China Sea could
hold up to 17 billion tonnes (18.7 billion tons) of oil and 498
trillion cubic feet of natural gas, according to Cnooc, China’s
state-controlled energy group.The
JOIDES Resolution was previously funded largely by the National Science
Foundation, a US federal agency, but thanks to budget cuts last year
China needed to step in to finance the South China Sea trip. “The
generosity of the Chinese government—which is paying US$6 million, or 70
per cent, of the expedition’s cost—was a deciding factor,” the Post
reported.http://qz.com/170916/why-is-the-us-helping-china-look-for-oil-in-the-south-china-sea/- – - – - - – - – - – -RELATED STORY:

Bridges for Asia’s island disputes

Christian Science Monitor
The Monitor’s ViewAs China asserts stronger claims over its coastal seas,
the US and others need to be more proactive in engaging Beijing. A joint
research trip in the South China Sea hints at one way.By the Monitor’s Editorial Board / January 27, 2014

Vietnamese
fishing boats are seen in the Spratly archipelago Jan. 5. A group of
anti-China protesters plan to gather on March 14 to mark the anniversary
of the 1988 naval battle between China and Vietnam near Spratly reefs,
in which 64 Vietnamese sailors were killed. Both Vietnam and the
Philippines have previously complained about Chinese activity and even
harassment in contested parts of the South China Sea. (Reuters)

If peace is not merely the absence of war, take note of this news: A
research ship will depart Hong Kong on Tuesday with 24 scientists from
China and the United States onboard. Its mission? To drill into the
seabed of the South China Sea and gather geological information.
The joint scientific expedition will provide the subseafloor data
that could lead to cooperative development of the abundant oil and gas
buried under those hotly disputed waters. For now, the trip is a
positive symbol of what should be happening in East Asia – a search for
overlapping interests where now there are big differences.
The research trip, funded largely by China but on a US-operated
vessel called the JOIDES Resolution, is the kind of goodwill step needed
to cool regional tensions. China is making aggressive claims to dozens
of small islands, causing the US and others to merely react, beef up
their militaries, strengthen trade and defense alliances, and allow the
various disputes to drift. Japan even warns that its relationship with
China is similar to tensions between nations in Europe before World War
I.
Of late, China has taken the Scarborough Shoal from the Philippines
while sending planes and ships closer to the Japan-controlled Senkaku
Islands (known as the Diaoyu in China). In violation of the United
Nations Convention on the Law of the Sea, Beijing also claims ownership
over vast portions of the seas and airspace off its coast. Such claims
could bring it into conflict with countries from South Korea to
Malaysia.
Various ways have been proposed to engage China proactively as a way
to cool its maritime expansion. The US seeks regular
military-to-military contact to avoid any incident at sea blowing up
into a crisis, such as the near-miss of a Chinese Navy vessel and the
USS Cowpens last month. Some experts propose a multilateral meeting to
settle all the island disputes. Over the past decade, Southeast Asian
nations have tried to get China to abide by a code of conduct in the
South China Sea disputes – with little success.
One hope is to bring China into joint development of the resources in
disputed areas. China has tried to negotiate such pacts in the past,
such as with Japan on fisheries. And even now, it is proposing bilateral
deals with individual neighbors. But the effort is sometimes seen more
as divisive or inconsistent than a signal of setting aside sovereignty
claims over islands.
Take China’s talks with Vietnam on joint development of offshore
hydrocarbons in the Gulf of Tonkin. On Jan. 1, China shocked Vietnam and
other neighbors with a new law that declares most of the South China
Sea to be out of bounds to foreign fishing vessels. The US called the
move “provocative and potentially dangerous.”
Such actions by Beijing are mostly incremental for now – on purpose.
China seeks a slow acceptance of “facts on the water” without posing the
risk of war. To counter this salami-slicing approach, the best response
by the US and its allies is to find ways to engage China constructively
in the region.
President Obama, who promised a “rebalancing” of US global strategy
toward Asia, needs to lay out a definitive white paper along these
lines. Joint development of ocean resources, if done well, is one
possible path. It signals a pause in territorial disputes and puts
regional economics ahead of assertive nationalism, much like the
regional trade pact now in the works for Asia and the US.
One lone ship like the JOIDES Resolution isn’t a big breakthrough on such cooperation. But at least it’s a start.http://www.csmonitor.com/Commentary/the-monitors-view/2014/0127/Bridges-for-Asia-s-island-disputes

This summer we will commemorate the 100th anniversary of
the start of World War I.

This senseless, destructive war was started and championed
by politicians who cared nothing for the 9 million people who lost their
lives.

And in doing so, they began a century of warfare
which continues to this day.

Our military industrial complex is larger than
ever. We have nearly 2 million troops and national guardsmen, plus 3.5
million civilians employed in the defense sector.

With such awesome capabilities, we continue to resort to
violence and death to exact political goals which benefit a tiny
elite.

All of this has created a police state in the Land of the
Free that is a far cry from the country we all grew up in.

Your government has spawned a culture of fear and
intimidation. Nearly every federal agency, including the Fish and
Wildlife Service, has its own gun-toting police force to pistol-whip citizens
into submission.

Our tax authorities have become more threatening
than mafia warlords. The plunder is so severe that record numbers of
Americans are renouncing their citizenship and leaving the country.

There are now dozens of federal, state, and local agencies
and courts which have the power to confiscate your assets without any due
process.

In addition to your house, your business, and your
savings, we also have the authority to take your children away from you as if
they are property of the state.

We are here to tell you what you can and cannot put in
your own body, or whether you can collect rainwater that falls on your own
property.

In fact, on any given business day, the federal government
issues hundreds of pages of new 'rules', proposed regulations, draft bills,
executive orders, and/or regulatory notices.

And if you are not compliant with these rules, you may be
committing a crime. Whether you know it or not.

When this nation was founded, there were four
federal crimes on the books. Today there are THOUSANDS. Plus we have
millions of government employees at all levels to enforce the
penalties.

All of this, of course, is financed by you the
tax-slave. [debt-slave]

You (plus unborn generations) are the poor suckers charged
with paying off the national debt we politicians have created.Officially the debt is just north of $17 trillion.
But if you include Social Security and pension shortfalls, the figure is several
times higher.You'll never know for sure because we have become masters
of deceit regarding official statistics, whether inflation, unemployment, or our
liabilities.But the situation is so dire that the Congressional Budget
Office projects the Social Security Administration's disability insurance trust
fund to RUN OUT by 2017.We get by year after year by increasing the debt.
And at well over 100% of GDP, we have truly reached the point of no
return.We are now in a position where we must default. Either we
must default on our national debt, or we must default on our obligations to you
the citizens. [Guess which one it will be???]We may end up stealing your savings. Robbing your Social
Security. Taxing you to death. Or simply inflating away the value of our
debt.Naturally, we're going to screw you in the process
somehow... so be prepared for that. Especially the inflationary tidal wave
that's coming.Our central bank has expanded its balance sheet at an
unprecedented pace, creating massive asset bubbles in its wake. These asset
bubbles have disproportionately benefited the ultra-wealthy at the expense of
everyone else.Such wanton money printing has also been
tremendously destructive to our credibility. Other nations worry about our
reckless irresponsibility. That's why we keep spying on
them.

Make no mistake: the consequences of our actions
are here. And the days of the United States as the world's dominant superpower
are finished.As the decline hastens, we will struggle to sell our debt
to the world and to ship our dollars abroad. Fewer nations will be interested in
our empty promises.And without the generosity of other nations loaning us
money at record low interest rates that fail to keep pace with inflation, you
will really be screwed.When this happens, you can absolutely count on us to clamp
down even harder on the economy and control even more of your lives. For your
own good, of course. [USA! USA! USA! USA!]No, this may not be the country that you all grew
up in. But it is the state of our union... whatever remains of
it.And so my fellow Americans, I urge you to grab your ankles
and get ready for a little 'shared sacrifice'.But don't worry about me, or my senior staff. We will
leave government with cushy pensions, $750,000 speaking fees, board seats on
public companies, and top positions in the industries that we have accommodated
at your expense.And of course I will be paid handsomely for the arrogant
memoirs I will write in which I deny any responsibility for the shit I've gotten
you all into.So when I say "shared sacrifice", I really mean
"your sacrifice".Thank you. God bless you, and God bless these United
States of America.

With all due respect to the author of this excellent article, it should be
emphasized that GREAT works of art, be they literary, musical, or of the visual
arts, connects us with the divine. And, anyone who has
spent time reading the poetry of William Blake knows this. Anyone
who has spent time contemplating the piano concertos of Beethoven knows
this. Anyone who has had the pleasure of viewing the magnificent baroque
sculptures of Bernini or the great renaissance art works of Rafael,
Da Vinci and Michaelangelo, knows this. These are the finest
creations produced by the human spirit. They are sublime.
These works of art elevate the human spirit. And that was always
the intentionof these great artists.

So, it should come as no surprise that the dark forces who seek to subvert and
enslave humanity have destroyed our culture with the death rattle of rap music,
the spiritual plague of pornography, and the numerous insults to the art of
great English literature. It should come as no surprise that our
so-called art galleries feature exhibits such as “The Piss Christ” and “Madonna
in elephant dung” and other abominations totally devoid of spirit.
And then there is the meaningless vapid distractions found on the
stuporvision. All of this serves to reduce humans to the level of non
sentient beings, and thus divert us from realizing our true nature. Our
divine nature!!!! And, above all, this cultural sludge that is sold
to the dupes and the fools as “works of art,” serves to separate us from
God.

Our children are being raised in a world fouled by this trash.
Is there any way to reverse this war on human
consciousness? Is it all over? It would seem so. We have
nobody to blame but ourselves. We looked the other way, and allowed this
subversion to flourish.

A
recent pamphlet published by the German government contains these chilling
words:

“Fathers do not devote enough attention
to the clitoris and vagina of their daughters. The child touches all parts of
their father’s body, sometimes arousing him. The father should do the same.”
[2]

Toddlers
are encouraged to indulge in “unlimited masturbation.” Their parents are
expected to offer practical demonstrations if need be — the better to produce
sexual precocity in their offspring.

“Children
should learn there is no such thing as shameful parts of the body,” the booklet
advises. “The body is a home you should be proud of.”

Children,
it is suggested, should be taught the movements of copulation as soon as they
reach the age of four, giving them what virtually amounts to a crash course in
the Kama Sutra as soon as they have learned to walk.

POSTER ON A
CLASSROOM WALL Do our children need this?

Depravity,
it seems, cannot be taught too early.

In
Holland, things have gone further. Here a political party, set up by convicted
pedophiles, clamors for the legalization of child pornography and
intergenerational sex between children of twelve and adults old enough to be
their grandparents. I forgot to mention bestiality. They want to legalize that
too. [3]

Who
is to blame
for the sex addictions we see suppurating all round us? This licentiousness,
growing by the day, thanks to the internet and the mass media, is far deadlier
and more destructive than it was half a century ago, before the sexual
revolution.

Those
who are responsible for this sickening depravity are clearly the people who
started the sexual revolution. They are the people, moreover, who control the mass
media.

Who
controls the media?

Who
determines the imagery and attitudes drip-feeding steadily into the minds of
the public? Who runs Hollywood? Who contaminates mass consciousness? Who
defiles the collective mind? Who pulls the puppet strings of marionette man?
Who are the Bad Shepherds leading the sheeple astray?

Who
are to blame, in short, for letting the world go to hell in a handcart?

I
won’t bother to answer these questions. More to the point, I dare not. If you
don’t know who owns the media — lock, stock and barrel — you’re wasting your
time reading this article.

Let me resume
here
my discussion of sexual depravity which formed the basis of my recent article Secret Sex Life of the Jews; and let me begin by
saying a few words on art, a subject I know something about.[4] And then let me
proceed to the subject of pornography and consider its deployment in the
systematic demoralization of the masses. [5]

First,
ask yourself this question: is there anything intrinsically admirable or
aesthetically pleasing about British painter Tracey Emin’s attention-seeking
leg-and-vagina paintings? When other artists offer us self-portraits, they
usually show us their faces. Not Ms Emin. Her idea of a “self-portrait” is to
show us her uterus. [6]

Feminist
icon Tracey Emin: “I’ve got it all”

Consider
only these titles
by the outrageously untalented Emin and draw your own conclusions about the
decadent crap being rammed down the throat of the public by the Jews who control
the art world [7]:

Everyone
I Have Ever Slept With, Fucking Down An Ally (sic), Asleep Alone
With Legs Open (several large-scale canvases of her splayed legs and
vagina), I’ve Got It All (legs splayed again, clutching banknotes to her
crotch), Weird Sex, CV Cunt Vernacular, Is Anal Sex Legal,
Masturbating, Get Ready For the Fuck Of Your Life. [8]

With
titles like these, Tracey Emin could hardly fail. Her rich Jewish patron,
advertising mogul Charles Saatchi, knew he was on to a good thing when he decided
to promote the career of this pretentious confidence trickster masquerading as
an artist. [9]

As
the Gadarene swine hurtle over the cliff top, Tracey Emin and her kind lead the
pack on their way down into the bottomless abyss. These are the dupes of
organized Jewry. By doing exactly what appeals to art patrons (almost all
Jewish; see below), these infinitely corrupt and untalented opportunists know
they will become rich and famous.

The sad truth is that so many female
“artists” — almost all of them rabid feminists and sexual exhibitionists — have
nothing to sell but vaginas. [10]

Jewish artist
Carolee Schneemann, drawing a paper snake from her vagina and calling it “art”.

Being
unable to paint properly or produce objects of lasting value, these exhibitionists
like to display their vaginas to the world and call it “art”. Here is one such
exhibitionist, Jewish performance artist Carolee Schneeman [12], pulling a
paper snake out of her vagina:

“I
saw the vagina as a translucent chamber,” she says, “of which the serpent
was an outward model: enlivened by it’s (sic) passage from the visible to the
invisible, a spiralled coil ringed with the shape of desire and generative
mysteries.” [13]

Someone
who had no idea what a vagina looked like would have a pretty tough time trying
to figure out its appearance from Ms Schneemann’s deathless prose.

Who
helps to promote this kind of pretentious claptrap? You don’t need three
guesses to answer that question.

In
2001, ARTnews listed the world’s Top Ten Art Collectors. Eight of them were
Jews. Ponder these staggering statistics: A people who constitute 0.2% of the
world’s population make up 80% of the world’s richest art collectors.

Out
of every thousand people in the world, roughly two are Jews. To be precise, one
in every 457 people are Jews. [14] Yet go to a conference at which 1000 of the
world’s wealthiest art collectors have gathered and you will find, to your
amazement, that 800 of them are Jewish.

Phenomenal,
isn’t it? [15]

♣

Some of the vaginocentric exhibitionists
mentioned above, like lesbian “performance artist” Annie Sprinkle, maintain
websites blocked by porn filters. The aptly named Sprinkle—a nom de porn
in honor of urolagnia [16] — is the lady who douched her vagina onstage
in 1991, before lying down and opening her legs so that members of the
audience, mostly male, could inspect her cervix with the help of a flashlight
and speculum.

Annie
Sprinkle, Jewish feminist and pornographer, practicing indecent exposure in a
public venue and pretending it’s an “art form”.

Performance
artist, prostitute, porn actress, feminist icon, and lesbian diva of depravity,
Ms Sprinkle would like us to believe that it is a form of “art” to
masturbate onstage with sex toys, her legs wide open, and invite members of a
predominantly male audience to peer up her vagina with torchlight and speculum.
(See picture opposite)

She
was recently invited by academic officials to show her vagina off at the
University of Illinois, a hotbed of Zionist propaganda and power; here she was
encouraged to give students an “orgasm workshop” — all this ostensibly in
pursuit of “higher education”. [17]

To
make matters worse, Sprinkle’s pathetic “look-at-my-pussy” acts were funded by
the National Endowment for the Arts, a mini-empire controlled by the hidden
hand of organized Jewry. [18]

♣

If
Annie Sprinkle was to acquire fame and fortune by letting dirty old men take a
peep between her legs, Hannah Wilke and Karen Finley sought variations in which
the vulva was again put to good use.

The
Jewish Wilke, being sadly deficient in originality, molded bits of chewing gum
into vulvas and stuck them all over her body, calling it “art”. [19]

Not
to be outdone, Karen Finley decided to smear her naked torso with chocolate
syrup [20] and performed public acts — using a yam — which I won’t describe in
detail in case nuns are reading this article. Rape, flatulence and menstruation
formed the least offensive items in Finley’s repertoire. [21]

Like
Sprinkle, Wilke and Schneemann, Finley is also Jewish, given that her mother is
of Jewish ancestry. [22].

So
that’s four Jewish “artists”, all playing with their pussies in front of
the world and being paid to do it by a Jewish-controlled government
organization called the National Endowment for the Arts.

One
begins to discern a subtle pattern here; or maybe it isn’t so subtle.

♣

Performance
artist Andrea Fraser [23] — amazingly, she isn’t Jewish! — deserves first prize
for sheer chutzpah. She is perhaps an illustration of the truth that however
low a slutty Jewess can sink, a slutty shiksa can sink a bit lower.

This
raunchy non-Jewish performance artist, who nevertheless finds it necessary to
move in Jewish circles like Madonna and so many other gentile sycophants,
arranged to meet a man at the Royalton Hotel in Manhattan, owned by Jewish
hotelier Ian Shrager.

Above
the bed, an overhead camera played Peeping Tom. The man was persuaded to part
with $20,000 in cash for the privilege of helping to create a “work of art”
with the frisky Fraser, the said work of art being a pornographic video filming
the two participants copulating on a Queen-size bed. This sex video, now
available for posterity, is pretentiously called “Untitled”. [24]

Jews
are famously known to dominate [25] the world’s $100 billion a year porn industry,
roughly 90 percent of which is generated within the United States. As many as
260 new porn sites go online daily, more than 10 sites an hour. [26]

Since
Jews are known to dominate the porn industry and comprise only 2% of America’s
population, it is reasonable to suppose that most of the new sites being
started up every hour are being started up by Jews.

“CHRIST SUCKS!”
— Jewish pornographer Al Goldstein

It
is even more alarming
to note how sex is now deployed by many American Jews as a weapon against
Christianity with its socially cohesive and family-friendly values.

Jewish
pornographer Al Goldstein’s infamous words — “The only reason that Jews are
in pornography is that we think that Christ sucks” — surely tell us all we
need to know about the bitter hatred felt by so many Jews for the Western
countries that have harbored them and given them hospitality for so long. [27]

Jewish
hatred for Christianity is legendary, spanning the Jewish political spectrum,
from the far left [28] to the neoconservative right [29].

This
can hardly be doubted, as the ugly picture of the Jewish pornographer (see
opposite) makes only too clear.

The
arrogance and sense of entitlement of so many Jews, whose values Al Goldstein
seems to have imbibed with his mother’s milk, never cease to astonish me.

“The
difference between a Jewish soul and the soul of non-Jews,” Rabbi Kook assures
us, “is greater and deeper than the difference between a human soul and the
soul of cattle.” [30]

Given
that Rabbi Kook would be the first to agree that rabbis form the intellectual
and spiritual backbone of Jewry, one is tempted to ask what makes a man become
a rabbi in the first place. Is it the thirst for God? Is it the wish to save
one’s soul and help others along the path to salvation?

Here
is Jewish actor Richard Pacheco who couldn’t quite make up his mind whether to
become a rabbi or a porn star:

“Five
years before I got my first part in an adult film … I went to an audition for
an X-rated film with my hair down to my ass, a copy of Wilhelm Reich’s Sexual
Revolution under my arm and yelling about work, love and sex, which were
Reich’s three principles. These things have got to be in balance or your life
is going to be fucked.” [31]

Note
that Pacheco had signed on to the radical left-Freudian views of Wilhelm Reich
— the wackiest and most extreme of the subversive sexual ideologies that
emerged from psychoanalysis.

Jewish
devotees of psychoanalysis typically saw it, first and foremost, as a blow
against Christian sexual mores; hence, as a sneak attack on Christianity
itself.

For
Jews, psychoanalysis placed Western culture on the couch. It was an
assertion of Jewish contempt for Christian culture: the culture of the
outgroup now destined for the dustbin of history. [32]

Pacheco
didn’t get the job, but he kept on auditioning, since all he really wanted was
to screw gorgeous blonde shiksas — doubtless an atavistic expression of Jewish
hatred for the goyim, every act of sex being an act of revenge:

“Five
years later I auditioned for another X-rated film. That very day, I also
interviewed at Hebrew Union Seminary to do rabbinical study. I made the choice
that the kind of rabbi I would be, if I became one, was one that could have
been performing in sex films as part of his experience.” [33]

Mindboggling,
isn’t it?

This
dupe of the sexual revolution couldn’t make up his mind whether to sing hymns
to God or kiss the devil’s ass!

In
the end, it’s the devil who won out.

Pacheco decided
to build a career in pornography — with the full blessings, incidentally, of
ADL chairman Abe Foxman who said that porn offered American Jews a valid and
worthy way “to pursue the American dream.” [34]

Porn
star Richard Pacheco: he also wanted to be a rabbi.

Richard
Pacheco
(born 1948) was the scion of an orthodox Jewish family from Pittsburg [35] From
an early age, bizarrely, he was attracted to the rabbinate and to pornography
in equal proportions.

He
had wrestled for years with the decision whether to become a rabbi or a porn
actor, praying in the morning for guidance and masturbating in the evening for
fun, when it occurred to him one day that he could up his number of orgasms per
day if he chucked all the spiritual stuff and concentrated on raw sex.

So
he did. And a porn star was born.

Featuring
in over 100 X-rated films and winner of countless awards for his sexual prowess
in front of the cameras, Pacheco was lucky to receive the loyal support of his
wife Ashley.

Managing
somehow to juggle a career in porn with a commitment to family life,
Pacheco later had sex with his wife — so we are told in Wikipedia —
“considerably less often after they had children and AIDS became a threat, but
he credits his pornography career for giving him the opportunity to continue
sexual encounters for a time without endangering his home life.” [36]

Here
is Pacheco being interviewed after his retirement from porn. If you are a nun
or under eighteen, I would advise you to skip the next bit:

As
a young husband, I had no idea how to ask my beloved wife to be my
“fuck-your-ass whore”.

Yeah,
I wanted some of that kind of sex, some very, very selfish lust with a sex
kitten. A “fuck-me-fuck-me” woman. There’d be corsets and leathers, high-heeled
boots laced up to crotchless panties, breasts spilling out of nippleless bras
in lush bordello bedrooms filled up with sex toys. Like blindfolds and
vibrators, handcuffs and paddles.

Yeah, and there’d be me with a genuine
tarted up won’t-say-no-woman. All the best drugs and oils in the world and
plenty of time. And there’d be no “I love you” in any of it!

I
would meet this X-rated woman at the hotel where they were holding the
auditions…and I would have sex with her right there in the hotel elevator! And
then I would go gome to my wife.” [37]

Richard Pacheco.
a recent photo. (Ain’t he cute?)

Asked
if he still watched adult movies now that he was a Senior Citizen, the former
rabbinical student replied: “Not much. Occasionally I’ll toss one on for
masturbation if my wife ain’t around.” [42]

One
has to hand it to Pacheco. His neo-Marxist mentor, Wilhelm Reich, would have
been proud of him. Because he managed to turn shamelessness into a virtue.
Still, it couldn’t have been much for his poor wife having a guy like this
prowling round the house.

In
1984, Pacheco won the Best Couples Sex Scene (video) with porn star Nina
Hartley. [38] In 1999, he was inducted into the AVN Hall of Fame
with feminist porn diva Annie Sprinkle. [39] In 2000, along with Sprinkle, he
was given a Lifetime Achievement Award by the Free Speech Coalition [40], an
organization that had given Nina Hartley an award only a few months earlier.
[41]

Note
that these three luminaries of lust — Pacheco, Sprinkle and Hartley — are all Jewish
pornographers and that the impressively named “Free Speech Coalition” is in
fact a trade association set up in 1991 to safeguard the interests of “adult
entertainers” — pornographers who for the most part are Jewish and are
based largely in the Jewish enclaves around Hollywood.

So
make no mistake: this sleazy industry, built on a foundation of onanistic lust
and sexual libertinism, is Jewish through and through.

The
“Free Speech Coalition” naturally rejects all claims that pornography is
addictive, given that they themselves are directly responsible for nurturing
that addiction and making money out of it.

It
also refuses to consider the possibility that serial killers and rapists could
in any way be influenced by inflammatory erotica, though the evidence for this
is enough to convince anyone except those engaged in the peddling of the
same poisons.

For
compelling evidence that pornography plays a significant role in the
crimes of serial killers, see my earlier essay on this subject, “Masters of
Porn: The Systematic Promotion of Sexual Deviance”. [43]

AMERICA,
2050

In
an important court case in 2002, Ashcroft v. Free Speech Coalition, the US
Supreme Court decided in the Coalition’s favour, thereby making it easier for
pornographers to demoralize Americans, corrupt their children, and promote a
general debasement of values — all this in accordance, incidentally, with the
Frankfurt School agenda [44] of producing a “culture of pessimism” designed to
foster anarchy and promote impotent anger and despair. [45]

Our
new elite is clearly engaged in the business of mind manipulation and mass
demoralization, nor will it rest until it has rebuilt the world in the image of
a new Sodom and Gomorrah — a dystopic nightmare.

Conclusion

I
have said before in an earlier artiicle, and I will say it again:

A
great storm is brewing and only a military coup or revolution can now save
America. Save it from what? From the spiritual cancer that is consuming
it from within, and from the foreign wars into which it is being lured —
Afghanistan, Iraq, and soon perhaps Iran — on behalf of another nation and its
indefatigable agents in America.

Unless
a miracle soon occurs and some charismatic leader comes to our rescue, an
unimaginably bleak future surely awaits us: a future in which the only
consolations left to us will be mindless entertainment, drugs, alcohol,
sexual intoxication — and suicide. [46]

Depravity
appears to have no limits, as those who have surfed the internet have often
discovered to their cost. The most appalling sexual addictions now render even
children helpless. Many a marriage is blighted and ends in ruins amid these
terrifying toxins.

And
yet we are only at the beginning. We have many a slime-green step to go before
we reach rock bottom. Abyss yawns below bottomless abyss and even to peer into
these black moral chasms is to make us giddy with vertigo.

There
is indeed no end to man’s depravity or the deadly machinations of the
Architects of Evil.

THE
BECKONING DARKNESS

“If
a Jew is tempted to do evil, he should go to a city where he is not known and
do the evil there.” —
The Talmud, Moed Kattan, 17a [47]

An
academic correspondent writes: “Though one ethnic group, the Jews, is
demonstrably to blame more than any other for the sexual demoralization of the
masses in Western countries, it would be disingenuous to pretend that they are solely
responsible. The primary corruptors could never have succeeded so spectacularly
but for the enthusiastic collaboration of degenerates within the corrupted
societies.”

16.
Urolagnia: a sexual perversion in which sexual excitement is associated
with urine. Its basis lies in sadomasochism and usually involves a woman urinating
on a man, his pleasure consisting in the humiliation of being “pissed on” by a
domineering woman — as in this 19th century illustration of a woman
urinating into a man’s mouth.

25.
The locus classicus for the “canard” — no longer a canard today —
that Jews control the porn industry is this jaw-breakingly entitled article, “Triple-exthnics“, by Jewish academic Dr Nathan
Abrams. This was published in the winter 2004 edition of the prestigious Jewish
Quarterly. What the title means is anyone’s guess. Suffice to say that Dr
Abrams tactlessly let the cat out of the bag in this article, much to the
embarrassment of organized Jewry. As a result, no one can be in doubt any
longer as to who controls the world’s porn industry. We now know it is the
usual suspects: the Jews.

26.
For the figure $100 billion as being the total revenues per annum from world
porn, see Family Safe Media’s “Pornography Statistics.” (The figure mentioned
here is $97 billion, but that is a 2006 figure. Since then, the figure has
topped the $100 billion mark.) For the other figures cited in the paragraph,
see Michael Arrington’s Internet Pornography Stats.

44.
Frankfurt School agenda. This is hugely important subject and there is a vast
amount of material available to the internet reader. Those who wish to know
more about the philosophical milieu of modernity — i.e., the cultural
swamp of sexual bolshevism in which the benighted masses are forced to flounder
today — are advised to make a careful study of the following eight core
articles:

About Me

ROLAND SAN JUAN was a researcher, management consultant, inventor, a part time radio broadcaster and a publishing director. He died last November 25, 2008 after suffering a stroke. His staff will continue his unfinished work to inform the world of the untold truths. Please read Erick San Juan's articles at: ericksanjuan.blogspot.com This blog is dedicated to the late Max Soliven, a FILIPINO PATRIOT.
DISCLAIMER - We do not own or claim any rights to the articles presented in this blog. They are for information and reference only for whatever it's worth. They are copyrighted to their rightful owners.
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